Cash flow loans on ~$1.5m of EBITDA?

March 26, 2021

by an investor from Northwestern University - Kellogg School of Management in Tampa, FL, USA

Does anyone know of a lender who lends against cash flow on smaller deals?

Our entry multiple is 3.5x and the company has a ~28% EBITDA margin on 3.6m of revenue. There are not many assets to lend against.

~$1.4m/year revenue for maintenance services. The balance is mostly sole sourced project work.

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Reply by an intermediary
from Boise State University in 800 W Main St, Boise, ID 83702, USA

I agree with several of the prior comments. In my first career, I was a commercial/SBA lender for 20 years and have been a business intermediary for 10 years. This sounds financeable. Just need to know the details as stated above (industry, trends, cash down into the purchase, and strength of buyers/guarantors since there is limited collateral)

Reply by a lender
from Indiana University of Pennsylvania in Pittsburgh, PA, USA

John - would appreciate the opportunity to review the project, provide my review, and propose a structure that meet your, the seller, and bank requirements. I can be reached at###-###-#### or redacted look forward to speaking with you.

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